Cyber Crime
Two Chartered Accountants Arrested in Rs 640 Crore Cyber Fraud: All Eyes on ICAI’s Response as Regulator
The Enforcement Directorate (ED) has apprehended two chartered accountants (CAs) and a cryptocurrency trader in connection with a Rs 640 crore money laundering case stemming from a cyber fraud investigation. The arrests were part of an expansive probe involving multiple raids across the country.
A fourth individual, the brother of a fugitive CA whose farmhouse in southwest Delhi’s Bijwasan was raided on November 28, was also detained for allegedly obstructing and attacking ED officials during the search operation.
Nationwide Raids and Seizures
The ED conducted searches at 13 locations across Delhi, Gurugram, Jodhpur, Jhunjhunu, Hyderabad, Pune, and Kolkata between November 28 and 30. These operations led to the seizure of Rs 47 lakh in unexplained cash and cryptocurrencies worth Rs 1.3 crore.
The investigation stems from two FIRs registered by the Economic Offences Wing (EOW) of the Delhi Police, alleging a massive cyber fraud of Rs 640 crore. The fraud involved scams such as online betting, gambling, part-time job offers, and phishing schemes targeting unsuspecting victims.
Sophisticated Money Laundering Network
The proceeds of the crime were reportedly siphoned off using over 5,000 “mule” bank accounts in India. These funds were layered through various transactions before being uploaded onto PYYPL, a UAE-based payment platform. A significant portion of the fraudulent money was withdrawn in Dubai using debit and credit cards issued by Indian banks.
The ED uncovered a well-organized nexus of chartered accountants, company secretaries, and cryptocurrency traders working together to launder the illicit proceeds. During the searches, Ajay Yadav and Vipin Yadav, both CAs, and cryptocurrency trader Jitendra Kaswan were taken into custody.
Digital Evidence and Organized Operations
The investigation revealed that a large-scale money-laundering racket was operated through handlers based abroad. These handlers communicated via encrypted instant messaging groups, issuing instructions for opening mule accounts, circulating cash, and purchasing cryptocurrency.
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Over 2,000 documents detailing debit and credit transactions across hundreds of bank accounts, as well as cryptocurrency purchases, were recovered and are under analysis.
Obstruction During Raids
Radhe Shyam Sharma, the brother of the alleged mastermind CA Ashok Kumar Sharma, was arrested for obstructing and physically assaulting ED officials during the raid at a farmhouse in Bijwasan. The raid also led to the seizure of incriminating documents, cheque books, ATM cards, PAN cards, digital signatures, and trust phrases used to operate secret cryptocurrency wallets.
Ongoing Investigation
The ED’s probe has exposed a highly coordinated network leveraging expertise in finance and technology to perpetuate cyber fraud and launder the proceeds. Authorities are continuing to analyze the recovered evidence to uncover the full extent of the scam and bring all those involved to justice.
This case highlights the growing challenges posed by the nexus of financial experts and technology in sophisticated criminal operations.
